Defining a retainer

A retainer is a fee paid to secure services. This procedure describes how to define a retainer.

Before you define a retainer, you must define your activity billing parameters and billing detail.

  1. Access Retainer Parameters (BR02.1).

    To identify retainer parameters for a billable activity, use these guidelines to specify the field values:

    Activity

    Select the billable activity for which you are defining retainer parameters.

    Retainer Sequence

    Select the order in which multiple retainers are applied to an invoice.

    Retainer Type

    Select whether the retainer amount is applied to the First (F) or Last (L) invoice, or use Specific (S) to proportion out the retainer amount.

    Note: If you specified a specific (S) retainer type, then you should define additional parameters on Retainer Detail (BR02.2).
    Retainer Description

    Specify a description of the retainer that will appear on the invoice.

    Retainer Rule

    Select whether the retainer applies to all activities associated with a contract (1) or applies to retainer activity (2).

    Note: If you are defining retainer parameters for a contract activity, then leave this field blank.
    Retainer Amount

    Specify the amount of the retainer (in the contract currency) that will be applied to the invoice.

    Status

    Select the status of the retainer relative to the life of the contract:

    • Apply to next (3): The retainer amount is applied the next time you run Invoice Calculation (BR120) .

    • Applied (2): The retainer amount has been depleted.

    • Hold (1): The retainer amount is not applied to the invoice. After you run Invoice Print and Interface (BR121), a Hold status changes to Apply to next.

  2. If you selected a Specific retainer type, then click Detail and define retainer detail.
  3. Use these guidelines to specify the field values on Retainer Detail (BR02.2):
    Note: You can use this form only if retainer records exist.
    Retainer

    To define multiple retainer amounts or percents, specify a unique code to separate each retainer within the sequence number. Each retainer code defined within a sequence number appears on the invoice.

    Description

    Specify a description of the retainer code. This description will print on the invoice.

    Amount

    Specify the amount of the retainer to be applied to an invoice when this retainer code is released. The total retainer amount entered on this form cannot exceed the total retainer amount entered on BR02.1.

    Note: If you specified an amount, then leave the Percent field blank.
    Percent

    Specify a percent of the retainer amount to be applied to an invoice when this retainer code is released.

    Note: If you specified a percentage, then leave the Amount field blank.
    Status

    Select the status of your retainer:

    • Apply to next (1): The retainer amount is applied the next time you run Invoice Calculation (BR120).

    • Applied (2): The retainer amount has been depleted.

    • Hold (3): The retainer amount is not applied to the invoice. After you run Invoice Print and Interface (BR121), a Hold status changes to Apply to next.

  4. To define a retainer invoice and posting date, click Invoice from BR02.1 to access Retainer Invoice Entry (BR02.3).
  5. Use these guidelines to specify the field values:
    Note:  You can view an example of the journal entries created by BR121.

    See Billing and Revenue Recognition With Retainers.

    Invoice Date

    Specify the date to use as the invoice date on the retainer invoice. If this field is blank, then the system date is used.

    Posting Date

    Specify the date to use as the posting date for this invoice. If this field is blank, then the system date is used.

  6. Select the Add form action to create a retainer invoice.
  7. Select Invoice Print to create the invoice. You must run Invoice Print and Interface (BR121) to update the retainer balance in the account category assigned on Retainer Parameters (BR02.1).

Related reports and inquiries

To Use
List defined retainers Retainer Listing (BR202)
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